The automotive component sector in India is bracing for a major blow as new US tariffs come into play, threatening to slash operating profits by 10-15%. According to ICRA, this could lead to a slowdown in revenue growth for the fiscal year 2026, with a drop in exports to the US. Despite these challenges, India is determined to capitalize on its cost competitiveness and is actively pursuing relaxed export controls and improved technology access from the United States. The impact of these tariffs is expected to be significant, but India remains resilient in its efforts to navigate through these turbulent times.